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Category: Restitution

Three reflections on the role of policy in the law of restitution for unjust enrichment – updated

11 December, 202019 December, 2022
| 5 Comments
| Restitution, Restitution

Introduction
The recent decision of the Court of Appeal for England and Wales in Gray v Global Energy Horizons Corporation [2020] EWCA Civ 1668 (09 December 2020) has prompted me to reflect, briefly, on the role of policy in the law of restitution for unjust enrichment. In this post, I will consider that role in the context of the structure such claims restitution for unjust enrichment that the Irish and UK courts broadly apply.

In the case concerning The Bricklayers’ Hall, Keane J predicated the obligation to make restitution for unjust enrichment upon four “essential preconditions”: whether there was (i) an enrichment to the defendant (ii) at the expense of the plaintiff, (iii) in circumstances in which the law will require restitution, (iv) where there is no reason why restitution will be withheld (see see footnote).

Questions of policy overtly arise on the second and fourth of these four essential preconditions, and they will be discussed in the next two sections of this post.

Reflection 1
The second essential precondition of a claim to restitution for unjust enrichment – whether there are circumstances in which the law will require restitution – essentially focuses upon the question of whether a cause of action has been made out.…

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Finders are not keepers. If money is just resting in your account, and even if you have no idea how it got there, you can’t keep it – you have to make restitution of the mistaken payment or run the risk of prosecution for theft

12 June, 202021 July, 2024
| 1 Comment
| Mistaken payments, Restitution

Father_Ted Crilly (via Wikipedia)In the classic comedy television series Father Ted (Channel 4 | IMDB), the title character, Fr Ted Crilly (pictured left, as portrayed by actor Dermot Morgan) often claimed “That money was just resting in my account!”. We learn early in the first series that Ted was exiled to Craggy Island for stealing money intended to send a child to Lourdes and using it for a trip to Las Vegas (S1E3). In various subsequent episodes (S1E6; S2E4; S2E6; S3E8) he claims that the money was just resting in his account. I was reminded of this by an article (sub req’d) by Fiona Ferguson currently on the front page of Courts News Ireland:

Man claimed he ‘found’ €17k of fraud cash in his bank account

A Malawian man charged with money laundering who told gardai that he found €17,000 in his bank account when checking to see if his wages had been paid has avoided a jail term.

John Carlos (32) used some of the money to pay his college fees before transferring €12,000 to a savings account. He then contacted the bank to alert them to the €17,000 and the transfer he had made.

…

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Another butterfly-effect banking typo, another mistaken overpayment, another example of restitution for unjust enrichment

17 October, 201931 December, 2019
| 3 Comments
| Mistaken payments, Restitution

Fife House, Glenrothes, FifeIn 2016, Fife was said to be the happiest place to live in Scotland, at least according to the Bank of Scotland Happiness Index. But it may not be quite so happy for a man who was recently overpaid nearly £300,000 by Fife Council and now has to pay it back (that’s Fife House, North Street, Glenrothes, Fife, Scotland, the seat of Fife Council, in the picture). According to Irish Legal News yesterday (also here and here):

Fife Council, in Scotland, was supposed to pay the man £59.95 a week, but accidentally paid £59,395 per week instead – and didn’t notice until around £297,000 was paid out. … Most of the cash has been recovered and a repayment plan has been put in place to recover the remaining sum, around £12,000.

It was a monumental banking blunder from an administrative worker at the council who made a “keying error“. This resulted in five massive weekly overpayments during July and August, before council officials discovered the error. This is a spectacular example of a butterfly-effect typo; and Irish Legal News has another example today: a judge calculating a half-billion dollar damages award typed $107 million rather than $107 thousand into his calculator.…

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The legal effects of some butterfly-effect typos; including mistaken offers, and restitution of mistaken payments

21 August, 201910 September, 2019
| 3 Comments
| Contract, Mistaken offers, Mistaken payments, Restitution

The Book of Kells is one of the great treasures in the Old Library in Trinity College Dublin. It is a manuscript of the Four Gospels in Latin based on the Vulgate of St Jerome. It was written and illuminated in the ninth century, probably in part in a monastery on the island of Iona in Scotland, and in part in a monastery in Kells, Co Meath, Ireland. Though a great medieval treasure, it contains some typographical errors. For example, the Gospel of Luke has an extra ancestor in the genealogy of Jesus (Luke 3:26; pictured left). It seems that the scribe read “qui fuit mathathiae” as “qui fuit mathath | iae” and thus wrote “qui fuit mathath” (the first line in the picture on the left) and “qui fuit iae” (the second line in the picture). Even Homer nods.

I was reminded of this when I recently read an article by Tom Lamont about the effects of electronic typos: an SMS misdirected to a wrong mobile phone number (leading to a marriage!); a satnav directed to Rom (in Germany) rather than Rome (in Italy); a jet from Sydney directed to 15 degrees 19.8 minutes east (and landing in Melbourne) rather than 151 degrees 9.8 minutes east) (bound for Kuala Lumpur).…

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Did Christmas come early for NJ commuters who were showered with money last week?

16 December, 2018
| No Comments
| Restitution

Flying dollarsAccording to Wikipedia, Betteridge’s law of headlines is an adage that states: “Any headline that ends in a question mark can be answered by the word no”. That is true of the question in the title to this post: no, Christmas did not come early for NJ commuters who were showered with money last week. The CBS headline tells the story: Armored truck spills cash on N.J. highway, drivers rush to grab dollars and crashes ensue. Of the more than $500,000 that spilled on to the highway, nearly $300,000 remains missing, and the bank and the police want it back. As with overactive ATMs, these flying dollars are not so many early Christmas presents, the bank is entitled to recover them, and retaining them may very well amount to theft. …

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Fore! Wayward golf winnings, restitution of mistaken payments, and interceptive subtraction

22 August, 201822 March, 2021
| 5 Comments
| Mistaken payments, Restitution

Dinosaur golfer; via PixabayLast month, English golfer Tommy Fleetwood came twelfth in The Open golf championship. Earlier this month, Thomas Fleetwood had the St£120,000 (US$154,480, €133,000) winnings deposited in his bank account. There doesn’t seem anything exceptional in that story, so let’s try again. Last month, British golfer Tommy Fleetwood came twelfth in The Open golf championship. Earlier this month, Florida golfer Thomas Fleetwood had the St£120,000 winnings deposited in his bank account. That’s right – golf’s authorities lodged the winnings to the bank account of the wrong golfer. One of Thomas’s golf friends posted a picture of the lodgement record on twitter. And Thomas duly repaid the wayward deposit. But he would not have been able to keep it anyway, had he been minded to. As I have said before on this site, you can’t keep the proceeds of a bank error in your favour; and, if you do, you probably won’t be able to get out of jail free (see also here, here, here, here, and here). So, Thomas would have had to give back the winnings to golf’s authorities; and they in turn will no doubt pay them on to Tommy, if they have not already done so.…

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Tory Island and Unjust Enrichment – a sad story ends not with a bang but a whimper

15 May, 2017
| No Comments
| Restitution

BaidinWhen I was in school, I learned a song in Irish called Báidin Fheilimí. It’s about Phelim’s boat, sailing to islands off Donegal, in the north-west of Ireland. In the first verse, it sails to Gola Island; in the second, it sails to Tory Island; and, in the third, the lively little boat is wrecked on the rocks off Tory. The song left a romantic image of Tory in my mind. Neville Presho probably had a similar image; but, like Phelim’s boat, it has been wrecked on Tory rocks. He had a holiday home on the island. Until, one day, he returned to the island, and found that the house was gone, replaced by car park for an adjacent hotel. I have, on this blog, been following his action against the hotel (see here, here, here, here). In Presho v Doohan [2009] IEHC 619 (17 July 2009), Murphy J held that the appropriate remedy lay not in reinstatement of the demolished house “but in the provision of a comparable dwelling on Tory Island or the open market value of a comparable dwelling on the island”. He later held that this amounted to €46,000.…

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Stand and deliver, your money or your wife! Of Georgian highwaymen, modern sham marriages, illegal contracts, and abuse of the legal process

25 April, 20179 May, 2017
| 2 Comments
| Contract, Restitution

Two sole traders form a partnership, and then fall out, so that one sues the other for outstanding monies. It is a common enough story now, and was even in the early 1700s. There is normally little of general interest in such case; but, in 1725, the additional facts in Everet v Williams earned it a notoriety that persists to this day, because the plaintiff had sued the defendant for the proceeds of highway robbery, and there had been a classic falling out amongst thieves. Unsurprisingly, the Court declined to lend its aid to the claim, and dismissed the case with costs (see Everet v Williams (1725) reported (1787) 2 European Magazine 360 (pdf) and (1893) 9 Law Quarterly Review 197 (pdf); see also William David Evans (ed) Pothier on Obligations (Strahan, London, 1802, vol 2) 3 (pdf); Nathaniel Lindley A Treatise on the Law of Partnership (1st ed, Johnson & Co, London, 1860) 161 (pdf); Robert Megarry Miscellany-at-Law (Sweet & Maxwell, London, 1955) 76 (pdf); mentalfloss).

The Court’s approach in this case was replicated by Twomey J in English v O’Driscoll [2016] IEHC 584 (25 October 2016), whilst the case itself was cited by Humphreys J in the High Court in KP v The Minister for Justice and Equality [2017] IEHC 95 (20 February 2017).…

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